Need Advice!! Pay off current debt or old collections??

[Anonymous]

I am in the process of repairing my credit.  I have two outstanding medical collections from PAML and Interpath Labs for lab work from 2 years ago and a closed credit card from 2012.  Would paying these balances off help my credit?  They are $199 & $125 & $612 respectively.  

The credit card is now with LVNV Funding and it is apprx 4.5 years old. 

My current loans and credit cards are on good terms and always get paid on time even if some of them are on the higher end of the credit limit.  

I am not sure if I should pay off those collections first or pay off some of my higher balances on my credit cards or pay a higher chuck toward my car loan.  

The above-listed collections are the last of the collections that still have balances.  Everything has been paid in full or settle for less. 

Any advice would help.  

Thanks!!  

[gdale6]

---

@Anonymous wrote:

I am in the process of repairing my credit.  I have two outstanding medical collections from PAML and Interpath Labs for lab work from 2 years ago and a closed credit card from 2012.  Would paying these balances off help my credit?  They are $199 & $125 & $612 respectively.  Welcome to the board, If you can get them removed yes

For unpaid medical debt that is reporting on your CR:

1. Call the OC and see if you qualify for Charity Care
2. If not then ask that they recall the collection in exchange for full payment
3. Send the reporting CA a PFD offer
4. Google the HIPAA Process and contact its creator for help

The credit card is now with LVNV Funding and it is apprx 4.5 years old.  If they are updating monthly then you want to settle to stop that updating as it keeps your Fico depressed. You can try to get the PFD from them but they are real tough to deal with.

My current loans and credit cards are on good terms and always get paid on time even if some of them are on the higher end of the credit limit.  

I am not sure if I should pay off those collections first or pay off some of my higher balances on my credit cards or pay a higher chuck toward my car loan.  Utilization of revolving credit is more important than installment its 30% of Fico score. You want only 1 card reporting a small balance each month the rest at 0.

The above-listed collections are the last of the collections that still have balances.  Everything has been paid in full or settle for less.   Anything paid and still reporting you would begin a GW letter campaign asking that the item be removed,

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Stories/td-p/1573680

Any advice would help.  

Thanks!!  

---

[Anonymous]

Contact collections dept and ask for Pay for delete.

---

@Anonymous wrote:

I am in the process of repairing my credit.  I have two outstanding medical collections from PAML and Interpath Labs for lab work from 2 years ago and a closed credit card from 2012.  Would paying these balances off help my credit?  They are $199 & $125 & $612 respectively.  

The credit card is now with LVNV Funding and it is apprx 4.5 years old. 

My current loans and credit cards are on good terms and always get paid on time even if some of them are on the higher end of the credit limit.  

I am not sure if I should pay off those collections first or pay off some of my higher balances on my credit cards or pay a higher chuck toward my car loan.  

The above-listed collections are the last of the collections that still have balances.  Everything has been paid in full or settle for less. 

Any advice would help.  

Thanks!!  

---

[Anonymous]

@gdale6   Can you elaborate on this: "If they are updating monthly then you want to settle to stop that updating as it keeps your Fico depressed."? I thought that a closed account diminished in effect over time, but you seem to be saying that even if it's old and hasn't changed in status getting a fresh update make the effect greater than if there was only a single old charge-off report. Is that true, or am I mis-understanding what you mean.  Thanks!

[gdale6]

---

@Anonymous wrote:

@gdale6   Can you elaborate on this: "If they are updating monthly then you want to settle to stop that updating as it keeps your Fico depressed."? I thought that a closed account diminished in effect over time, but you seem to be saying that even if it's old and hasn't changed in status getting a fresh update make the effect greater than if there was only a single old charge-off report. Is that true, or am I mis-understanding what you mean.  Thanks!

---

An account that is closed not being updated ages in the Fico algorithm. If a derog (COed, or CA) that has been dormant for years suddenly updates its going to cause a Fico score drop as Fico treats it as a fresh new derog. The creditors owed money know this so they use it as a weapon to keep ones Fico depressed and update it monthly or every so often.

[Anonymous]

Thanks... I didn't know that but it makes sense and covers a situation I am in. I'm paying off an old acct that is in exactly that situation (a six year old overdraft fee from a credit union and they've been reporting it every month), so I assume I'll see a good improvement once the zero balance posts?

[RobertEG]

It is analogous to a creditor reporting a 120-late after prior reporting of a 90-late.  The period of delinquency is reported as having extended, and the debt as remaining unpaid.

Updated reporting that a delinquent account remains delinquent is a postive statement that the debt remains unpaid, and thus is considered by the FICO scoring algorithm as effectively extending the period of account or collection delinquency.

Leaving a delinquents debt unpaid should not and does not result in FICO considering there is less credit scoring impact.

However, if the furnisher does not update, there is no presumption as to whether the account or collection remains unpaid.